2017 has been a good year for Japan – First German Spezialfonds for Japan Estate launched

The spirit of optimism sparked by Prime Minister Shinzo Abe in 2013 has now spread throughout Japan. All sectors of Japanese society are pulling together to once again make their nation a leading economic force.
Japan’s leading share index, the Nikkei 225, rose by 19% in 2017, thanks mainly to foreign investors, who helped propel it to its highest level since the beginning of 1992.

It was amid this positive atmosphere that the Kenzo Japan Residential Fund was launched in July – the rst German real estate Spezialfonds (fund targeting institutional investors) interested in Japanese residential properties.

In our opinion, 2018 will be another good year for Japanese real estate.

First, some important background information: Even though Japan real estate prices have recently reached levels similar to that seen during the 2007/8 real estate boom (see below chart), the environment then contrasted dramatically from the one of today. Those differences are illustrated by the following seven factors.